Press Esc to close
Friday 31 October 2014
News updated at 2:37 PM IST
Weather
Max: 28.4°C
Min : 18°C
In Bangalore
Partially cloudy

Penguin, Random House ink merger JV

London, Nov 4, 2012, Agencies

The world's two top English language rival publishers, Britain's Penguin Books and Germany's Random House, on Saturday struck a merger deal to create the globe's biggest book publisher.

The new company would be run as a joint venture known as Penguin Random House, with the tie-up expected to be completed in the second half of next year subject to regulatory approvals, the BBC reported.

The decision by two of Europe's largest publishing houses to merge their popular units for a bigger slice of the publishing largesse has sounded a note of caution among Indian publishers, who are waiting for the deal to reveal itself. British publisher Pearson owns Penguin books while English-language rival Random House is owned by German media giant Bertelsmann.


The German media giant Bertelsmann will own 53 per cent of the joint venture, Pearson will own 47 per cent.

The merger comes amid reports that Rupert Murdoch-run News Corp - which also owns Harper Collins - was bidding to make a substantial cash offer to takeover Penguin.

Complementary skills

"The combination brings together two of the world's leading English language publishers, with highly complimentary skills," a statement by Pearson said.

"Random House is the leading English language publisher in the US and the UK, while Penguin is the world's most famous publishing brand and has a strong presence in fast-growing developing markets," it said. Bertelsmann will nominate five directors to the board of Penguin Random House and Pearson four.

John Makinson, currently chairman and chief executive of Penguin, was to be chairman of Penguin Random House and Markus Dohle, currently chief executive of Random House, its chief executive.

In 2011, Random House's revenues were 1.7 billion euros with an operating profit of 185 million euros. Penguin recorded revenues of 1 billion pounds. Based on recent results, combining the two firms will create a business with annual revenues of about 2.5 billion pounds.

A section of leading publishing houses in the country felt that the deal could set in a wave of mergers of small and big players in the industry at the domestic level. The trend had begun showing on a smaller scale few years ago with publishing houses like Zubaan, Yatra Books and Westland Tranquebar Ltd tying up with bigger publishers for a wider distribution footprint. Rupa & Co, a mass market fiction leader in India, tied up with former Penguin CEOs David Davidar and Ravi Singh to set up Aleph Book Company, a literary fiction imprint which uses Rupa's resources.

It is too early to comment on the Penguin-Random Houser merger, said Kapish Mehra, publisher of Rupa & Co. “Let us see how the merger unfolds. I don't think the situation will change much on the ground,” Mehra said.

Go to Top

Photo Gallery
Security personnel patrol a street after a protest by the supporters of Jammu and Kashmir...

Security personnel patrol a street after a protest by the supporters of Jammu and Kashmir...

India A players Rohit Sharma and Manish Pandey during a practice match against Sri Lanka...

India A players Rohit Sharma and Manish Pandey during a practice match against Sri Lanka...

Indian Air Force officers arrive at the Gateway of India after swimming for a distance...

Indian Air Force officers arrive at the Gateway of India after swimming for a distance...

The Navy hovercraft carrying West Bengal Chief Minister Mamata Banerjee to Sagar Island...

The Navy hovercraft carrying West Bengal Chief Minister Mamata Banerjee to Sagar Island...

A Rajasthani herder with his cows in Gurgaon...

A Rajasthani herder with his cows in Gurgaon...

Devotees wait for the Sun to offer prayers, during Chhath Puja festival in Agra...

Devotees wait for the Sun to offer prayers, during Chhath Puja festival in Agra...

Sand artist Sudarsan Pattnaik creates a sand sculpture on Black Money with a message...

Sand artist Sudarsan Pattnaik creates a sand sculpture on Black Money with a message...

BJP workers arrange the cut-outs of party symbol (lotus) to decorate the boats at the Marine...

BJP workers arrange the cut-outs of party symbol (lotus) to decorate the boats at the Marine...

A police man investigates the tunnel dug up by the robbers in Gohana bank heist, in Sonipat...

A police man investigates the tunnel dug up by the robbers in Gohana bank heist, in Sonipat...

Bollywood megastar Amitabh Bachchan sweeps in a stree during a cleanliness drive as a part...

Bollywood megastar Amitabh Bachchan sweeps in a stree during a cleanliness drive as a part...

Copyright 2014, The Printers (Mysore) Private Ltd., 75, M.G Road, Post Box 5331, Bangalore - 560001
Tel: +91 (80) 25880000 Fax No. +91 (80) 25880523